Mitsubishi Heavy Industries Machine Tool to Integrate Engine Valve Business into Fuji Oozx

The new company, tentatively named "Fuji Hollow Valves, Inc.", will be established in February as a wholly-owned subsidiary of Fuji Oozx, and later succeed both MAT's hollow-head valve business and Fuji Oozx's hollow-stem valve business. After the business transfer, MAT and Fuji Oozx will own 31.9% and 68.1% of the new company's shares, respectively. Toru Suzuki, Director of Fuji Oozx, will serve as president of the new company.

The joint venture will further develop hollow engine valve technologies and knowhow accumulated by the two parent companies, and will manufacture both hollow-head and hollow-stem valves. Marketing activities, including order-taking and sales, will be handled by Fuji Oozx.

Hollow-head engine valves are derived from valves developed by MHI prior to WWII for use in aircraft engines. Based on its original production technology, MHI has since developed lightweight, high value-added hollow-head automotive valves that enhance engine response and boost fuel economy. MHI has also been establishing mass production structures and expanding sales for these types of valves.

The environmental and economic benefits of "eco-cars" have made such cars increasingly popular in recent years, particularly in Japan, the U.S. and Europe. As a result, automakers have increasingly focused on the development of highly efficient new engines, creating increased demand for hollow engine valves that enhance both fuel efficiency and engine performance. This in turn has required valve manufacturers to acquire mass-production capabilities for a wide range of different types of hollow engine valves. MAT's solid engine valve business has also faced challenges in materials procurement and mass-production efficiency, both of which can be more effectively addressed through integration with Oozx and the establishment of a joint venture dedicated to hollow valve production.

Through the integration of the valve businesses of the two companies, existing customers of MAT will benefit from a stable supply of high quality engine valves in the long term, and Oozx will be able to expand its customer base together with product portfolio and enhance its presence in the market.

Going forward, this integration will enable MAT to share automotive engine valve knowhow and technical expertise with Fuji Oozx, and allow it to strengthen its presence in the market while synergistically developing new business opportunities.